Question 1

The capacity for a machine or system that is available after accounting only for scrap and rework is known as actual capacity.

Accepted Answer

Actual capacity refers to the total capacity a machine or system can achieve under real-world conditions, taking into account not only scrap and rework but also downtime, maintenance, and other operational inefficiencies.

Question 2

A planning system that focuses on bottlenecks to ensure that the MPS does not overload production processes or facilities is known as ________.

Accepted Answer

The answer of A planning system that focuses on bottlenecks...

Question 3

A planning strategy that produces the same amount every period,and demand is met by varying inventory levels is known as ________.

Accepted Answer

The answer of A planning strategy that produces the same...

Question 4

Inventory information for firm Best Tools: $$\begin{array} { l | l } 
\text { Unventory at } & \
\text { the end of } & \
\text { March: } & 200 \text { units } \
\hline \text { Expected } & \
\text { demand } & \
\text { during April: } & 50 \text { units } \
\hline \text { Production } & \
\text { planned for } & \
\text { April: } & 100 \text { units }
\end{array}$$
What is the expected inventory at the end of April?
A)50 units
B)150 units
C)250 units
D)350 units

Accepted Answer

The expected inventory at the end of April can be calculated using the following formula:

Expected inventory = Inventory at the end of March + Production planned for April - Expected demand during April

Expected inventory = 200 + 100 - 50 = 250 units

Therefore, the expected inventory at the end of April is 250 units.

Question 5

The capacity for a machine or system that is available after accounting for scrap and rework and also factors in inefficiencies inherent in the system is known as available capacity.

Accepted Answer

The answer of The capacity for a machine or system...

Question 6

Systems that help managers make decisions relating to the creation of schedules that balance demand and supply are known as ________.

Accepted Answer

The answer of Systems that help managers make decisions relating...

Question 7

Using mechanisms such as pricing to level demand is called ________.

Accepted Answer

The answer of Using mechanisms such as pricing to level...

Question 8

The capacity that a machine or system should realize given optimal operating conditions is the design capacity.

Accepted Answer

This is the correct definition of design capacity.

Question 9

A planning strategy that produces products in the exact amount demanded in each period is known as ________.

Accepted Answer

The answer of A planning strategy that produces products in...

Question 10

The portion of ERP that disaggregates the sales and operations plan (SOP)to determine when individual products will be produced is known as the ________.

Accepted Answer

The answer of The portion of ERP that disaggregates the...

Question 11

Orders that are held in abeyance until more stock arrives are known as ________.

Accepted Answer

The answer of Orders that are held in abeyance until...

Question 12

Creating a high-level overview of planning,which involves groups or families of products,is called ________.

Accepted Answer

The answer of Creating a high-level overview of planning,which involves...

Question 13

A printer has been rated by the manufacturer to print 40 pages per minute (ppm).However it is noticed that the printer has a 5% jamming rate.Hence the actual capacity of the printer is 36 pages per minute (ppm).

Accepted Answer

The actual capacity of the printer would be 38 pages per minute, not 36.

5% of 40 is 2, so if the printer jams 2 pages out of every 40, it would actually print 38 pages per minute (40-2=38).

Question 14

A method for planning capacity on a daily basis is known as ________.

Accepted Answer

The answer of A method for planning capacity on a...

Question 15

A manager has prepared a forecast of expected aggregate demand for the next six months.Develop an aggregate plan to meet this demand given this additional information: A level production rate of 100 units per month will be used.Backorders are allowed,and they are charged at the rate of $8 per unit per month.Inventory holding costs,using average monthly inventory levels,are $1 per unit per month.Determine the cost of this plan if regular time cost is $20 per unit and beginning inventory is zero.
 $$\begin{array} { | c | r | } 
\hline \underline{\text { Month }} &\underline{ \text { Forecast }} \
\hline 1 & 80 \
\hline 2 & 100 \
\hline 3 & 120 \
\hline 4 & 110 \
\hline 5 & 100 \
\hline 6 & 90 \
\hline
\end{array}$$

Accepted Answer

The answer of A manager has prepared a forecast of...

Question 16

In the chase SOP strategy,variations in demand from period to period are met by
A)varying production levels.
B)keeping production constant.
C)changing price levels.
D)using inventory buffers.

Accepted Answer

The chase SOP strategy involves adjusting production levels to match demand fluctuations, minimizing inventory levels.

Question 17

In yield management,the mechanism used to match capacity with demand is by
A)varying production levels.
B)keeping production constant.
C)changing price levels.
D)using inventory buffers.

Accepted Answer

Yield management relies on changing price levels to match capacity with demand. By adjusting prices higher during peak periods and lower during off-peak periods, the business can encourage customers to shift their consumption habits, balancing supply and demand. This helps maximize revenue and profit potential while minimizing waste and underutilization.

Question 18

Breaking product families into individual products and components of products is called ________.

Accepted Answer

The answer of Breaking product families into individual products and...

Question 19

Inventory information for firm Best Tools: $$\begin{array} { l | l | } 
\hline \begin{array} { l | } 
\text { Expected } \
\text { inventory at }
\end{array} & \
\text { the end of } & \
\text { April: } & 200 \text { units } \
\hline \text { Expected } & \
\text { demand } & \
\text { during April: } & 50 \text { units } \
\hline \text { Production } & \
\text { planned for } & \
\text { April: } & 100 \text { units } \
\hline
\end{array}$$
What was the inventory at the end of March?
A)50 units
B)150 units
C)250 units
D)350 units

Accepted Answer

Since the production planned for April is 100 units and the expected demand is 50 units, the expected inventory at the end of April is 200 units. Thus, the inventory at the end of March can be calculated by subtracting the expected sales in April from the expected inventory at the end of April: 200 - 50 - 100 = 50 units. Therefore, the answer is (B) 50 units.

Question 20

The design capacity of a machine or system refers to the maximum output that can possibly be attained given optimal operating conditions.

Accepted Answer